MUKESH MODI Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Challenge in the instant petition (Civil Writ Petition No. 1140/2014) and 9 other conjoined petitions at the threshold was laid by the assessees against the impugned action of the respondent Revenue in initiation of re-assessment proceedings under Section 147/148 of the Income Tax Act 1961 (for short, 'Act'). In the original petition, the petitioners have also questioned the order passed by the first respondent rejecting their preliminary objections against initiation of re-assessment proceedings. During pendency of these petitions the petitioners made attempt to bring changed fact scenario vis-a-vis all these assessees and placed on record the ex-parte assessment orders passed by Assessing Officer (AO) on 3rd February 2014 for the assessment year 2010-11.

(2.) Taking note of the ex-parte re-assessment orders passed by the AO, the petitioners made endeavour to implore annulment of these orders by way of additional affidavit. In relation to the other writ petitions i.e. S.B. Civil Writ Petition No. 1250/2014, 1248/2014 and 1496/2014 respectively which were laid subsequently, the ex-parte re-assessment orders were also questioned besides notice under Section 147/148 of the Act and rejection of preliminary objections in the original petition.

(3.) The undisputed facts, necessary and germane to the matter, are that a search under Section 132 of the Act and survey under Section 133A of the Act was simultaneously conducted by the investigation wing of the Income Tax Department at the business/residential premises of Sirohi based Modi alias Adarsh Group. The petitioners Mukesh Modi, Daksha Kumari Jain and Bharat Das Vaishnav were eventually covered under the search action and vis-a-vis other assessees, viz., Prakash Beverages, Nakoda Land Developers and Sambhav Energy, a survey was conducted wherein certain documents/loose papers were seized/impounded. The Income Tax Department carried out this entire exercise on 10th of February 2010. Subsequent to that, on 6th of January 2011 notice under Section 153A of the Act was issued in case of Mukesh Modi, Daksha Kumari Jain and Bharat Das Vaishnav whereas notice under Section 153 of the Act was issued in case of Krishna Dairy by relying on certain documents found during the course of search. While undertaking proceedings under Section 153A of the Act, the AO scrutinized the seized/impounded material during the course of search/survey dated 10th of February 2010 and after consideration and analyzing the same issued a consolidated questionnaire to the concerned assessees. Be that as it may, no proceeding for framing regular assessment under Section 143(3) of the Act was initiated in case of Prakash Beverages, Nakoda Land Developers and Sambhav Energy. This exercise was completed on 21st of October 2011. Proceedings initiated in case of Krishna Dairy, under Section 132 was also dropped on 24th of November 2011.